PG&E Corporation (PCG) Fundamental Analysis: Bull vs. Bear Case

PCG

PG&E Corporation

Fundamental data last updated:September 4, 2026

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company profile

SECTOR

Utilities

industry

Regulated Electric

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

PG&E Corp. operates as a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. The company was founded in 1995 and is headquartered in Oakland, CA.

VALUATION

P/E

12.13 Market Cap ($M USD)

$35.89B

Forward P/E

6.97 PEG

0.09 PRICE TO SALES

1.39 PRICE TO BOOK

1.08 EV / EBITDA

9.23 5-Year Average P/E

Free Cash Flow Yield

-11.73%

DCF Value

$-9.28

Graham Number

$21.38

Price to FCF

-8.52

EV to FCF

-23.12

Earnings Yield

8.24%

FCF Yield

-11.73%

DIVIDEND

Yield

0.92%

Annual Payout

$0.15

Payout Ratio

11.81%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.34

Next Year EPS Growth Estimate

$2.34

Next Year Revenue Growth Estimate

$30.33B

Return on Equity (ROE)

9.16%

FREE CASH FLOW

Operating Margin

19.35%

Debt-to-Equity

1.88 Piotroski F-Score

7 Altman Z-Score

0.54 Return on Invested Capital (ROIC)

3.86%

Current Ratio

1.20 Quick Ratio

1.20 Net Debt to EBITDA

5.83 Interest Coverage

1.61 Gross Profit margin

45.93%

FCF PER SHARE

$-1.91

REVENUE PER SHARE

$11.75

Gainseekers Quantitative Analysis

Summary

PCG’s valuation paints a complex picture. The stock has traded below its Graham Number, suggesting potential undervaluation. However, the DCF Value is negative, raising red flags about future cash flow expectations. The Forward P/E of 6.87 indicates a market anticipating growth, yet the Altman Z-score of 0.54 signals financial distress. While the Earnings Yield of 8.36% is attractive, it’s overshadowed by the high Net Debt to EBITDA ratio, hinting at leverage concerns.

AI Exposure / Tech Reliance

In the regulated electric industry, PCG's exposure to AI and tech shifts is limited but crucial. As utilities increasingly integrate smart grids and IoT, PCG must adapt to maintain operational efficiency. Their ability to leverage technology will be pivotal in optimizing energy distribution and customer service.

The Bull Case

For value investors, PCG offers intriguing prospects. The Piotroski F-Score of 7 suggests solid financial health, while the operating margin of 19.35% indicates strong pricing power. Despite a negative FCF Yield, the company's ROIC of 3.86% shows efficient capital use. These factors, combined with a low Forward PEG of 0.09, make it a compelling buy for those betting on a turnaround.

The Bear Case

Yet, the bear case is hard to ignore. The Altman Z-score highlights significant financial risk, and the negative Price to FCF ratio underscores cash flow issues. With a Debt to Equity ratio of 1.88, leverage is a concern, especially given the low interest coverage of 1.61. The stock's proximity to its 52-week high suggests it might be technically overextended, adding to the risk profile.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$22.67

Institutional Ownership %

1-Year Beta

0.29 Insider Buying % (6 Mo)

Distance to 52-Week High

17.58%

Distance to 52-Week Low

20.41%

EARNINGS SURPRISE %

8.01%

50-DAY SMA

$17.00

200-DAY SMA

$16.31

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.